Faced with the Chinese government’s recent crackdown on bitcoin (BTC) mining, the company BIT Mining is looking to leave the country. Despite the context, the company still manages to raise $50 million… to escape from China!
But who is this bitcoin miner with crazy ambitions?
BIT Mining is one of the largest bitcoin and other cryptocurrency mining companies in the world. The company is listed on the New York Stock Exchange (NYSE) under the acronym “BTCM”. Since China’s successive announcements banning bitcoin and its mining for the sixth time in 8 years, its stock has been falling on the world’s largest exchange.
A huge fundraising to leave China
Announced on July 12, the company has reached an agreement with institutional investors to raise $50 million through several private placements.
BIT Mining is taking the move in response to the Chinese Communist Party’s crackdown on bitcoin mining, noting plans to “acquire additional mining machines, build new data centers” and most importantly expand its infrastructure overseas.
Each share comes with a warrant that investors can use to purchase additional shares in the future. These warrants will have a term of 3 years and will be exercisable for a further 6 months from the date of issuance at an exercise price of $6.81 per 10 shares of Class A common stock.
Bitcoin mining facility relocation supported by US
New York-based investment bank H.C. Wainwright & Co. is acting as sole placement agent for the offering, with the private placement set to close this July 16.
The fallout from the mining crackdown in China has seen many Chinese miners eyeing the state of Texas for its cheap electricity. According to a June 24 Nikkei Asia article, BIT Mining plans to invest $26 million to build a 57-megawatt data center in the crypto-friendly state.
Like the IBC Group, which announced that much of its business would be relocated to North America, South America, Europe and the Middle East, BIT Mining is also going international. The number one criterion is to find cheap energy, but above all peace of mind with countries ready to welcome these miners 2.0. Did China make a huge mistake with bitcoin?
